Luxembourg’s parliament has passed new legislation that will allow UK-based insurers operating in the country to continue to serve EU clients for 21 months in case of a no-deal Brexit scenario, according to reports from Luxembourg Times.
The new bill will mean that UK financial companies, including insurers, won’t be considered as being from a third country outside the EU during this period.
The bill was passed unanimously by Luxembourg lawmakers this week and follows the example of Germany, which became the first country to propose a 21-month transition period for finance companies back in November 2018.
The law will become effective from the date the UK withdraws from the EU in the event that no deal can be agreed.
Affected services will be limited to those that were in place or were closely connected to those in place before the withdrawal date.
The legislation came alongside six other Brexit-related bills, which addressed residency rights, benefits, public sector employees, collective investments, and professional qualifications.
Luxembourg Times noted that all bills are in principle subject to two successive votes at least three months apart, but anticipated that they would be accepted following the first round of voting due to the urgency of the UK’s imminent departure.
